China Economic Update – April 2022

Follow the money: The strength of China’s outward foreign investment during pandemic raises questions.

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China’s outward foreign direct investment accelerated rapidly between 2000 and 2016 – initially to secure access to natural resources, before diversifying into a range of services and higher value technology sectors. Tighter regulation in subsequent years saw a decline in the flow of outward investment, however official data point to an increase in 2020, despite the negative impacts of the COVID-19 pandemic. These recent data are inconsistent with other international measures of China’s investment, raising questions around their accuracy.

For further details, please see the China Economic Update (April 2022)